Aegis Vopak Term

Aegis Vopak Terminals has established itself as a leading independent provider of storage and logistics infrastructure for LPG, petroleum, chemicals, and other liquid products in India. The company's strategically located network spans key ports across India, supported by integrated multi-modal evacuation systems. This positioning places it at the center of India's energy and industrial supply chain, leveraging the complementary strengths of Aegis Logistics' domestic market insight and Royal Vopak's global operational excellence.

The company is executing 'Project GATI' to scale infrastructure ahead of demand, with aggregate capital expenditure expected to reach USD1.2 billion by the end of next year (FY27) and a planned capex pipeline of roughly USD5 billion by 2030. This growth is funded through internal accruals and measured debt, targeting a gearing ratio of approximately 0.6x. Since its joint venture formation in November 2021, liquid storage capacity has grown 3.75x and LPG static capacity 4.5x, demonstrating rapid expansion.

At Haldia, a 75% stake acquisition in Hindustan Aegis LPG Limited added 25,000 metric tons of LPG storage and marked entry into the East Coast market. JNPT is undergoing a major expansion with INR1,675 crores capex, adding 318,100 cubic meters of liquid storage and 77,236 metric tons of LPG capacity, with the first phase operational in Q1 FY27. Kochi plans to add 60,000 cubic meters of liquid storage. Kandla, a critical hub, achieved milestones including receiving a VLGC and completing the Jamnagar-Loni LPG pipeline, with Kandla-Gorakhpur connection expected in H1 FY27. Pipavav commissioned a cryogenic LPG terminal (48,000 metric tons) and is building an independent ammonia terminal (36,000 metric tons) backed by a 15-year take-or-pay agreement with Hindustan Zinc, expected in H1 FY27. Mangalore commissioned an 82,000 metric tons cryogenic LPG terminal and added 75,000 cubic meters of liquid capacity, bringing total liquid storage to 193,000 cubic meters.

For FY26, revenue from operations grew 17% YoY to INR923.1 crores, with liquid terminaling up 27.8% to INR440.5 crores and gas terminaling up 8.6% to INR482.6 crores. Operating EBITDA increased 19.4% to INR686.5 crores, and net profit surged 52.1% to INR341.9 crores. Q4 FY26 continued this momentum, with revenue up 22.2% to INR243.5 crores, EBITDA up 24.2% to INR179.2 crores, and net profit up 15.3% to INR73.9 crores. The company raised INR660 crores through Series 1 NCDs and INR1,030 crores through Series 2 NCDs, diversifying its funding base.

The LPG market faced supply challenges due to the Strait of Hormuz conflict, causing volumes to drop by 50% in March, recovering to 30-35% down in May. However, Aegis Vopak's vertical integration with its parent, Aegis Logistics, which handles distribution, helped maintain utilization of its LPG terminals. This integrated approach is expected to normalize operations by Q2 FY27 and supports the company's ability to manage market fluctuations and ensure consistent throughput.

Aegis Vopak is strategically expanding into the ammonia business, positioning itself within India's green hydrogen and energy transition agenda. The Pipavav ammonia terminal, backed by a 15-year take-or-pay agreement with Hindustan Zinc, is expected to be commissioned in H1 FY27. The company also welcomed ITOCHU Corporation of Japan as a strategic partner, with an initial 10% stake in Aegis Terminal Pipavav Limited, planned to increase to 25% over three years, underscoring the long-term potential and strategic importance of this segment.